Developer Proposed Demolition of Penguin Coffee Shop
A new eight-story apartment project has been filed for the site of the aging Santa Monica structure.
Updated on Oct. 12, 2026 in Commercial
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ValueRock has filed a preliminary application to demolish the former Penguin Coffee Shop to make way for an eight-story mixed-use building. The project would bring 138 new residential units to Santa Monica if approved.
Why it matters
The proposal has triggered a preservation battle, as local conservancy groups have filed to protect the 40-year-old building for its architectural integrity. This clash pits new housing development against the preservation of local landmarks.
The proposed development includes 20 studios, 90 one-bedroom apartments, and 28 two-bedroom units. The existing building is over 40 years old, and city code mandates a 75-day review process for the structure.
The players
ValueRock
This real estate development firm has initiated the preliminary application process for the mixed-use building.
Santa Monica Conservancy
This local organization is advocating for the preservation of the building site based on its architectural history.
Los Angeles Conservancy
This group joined the effort to designate the former coffee shop as a protected historic landmark.
The details
The developer submitted the proposal under city case number 26ENT-0213, seeking to redevelop the site for density. Meanwhile, the Santa Monica Conservancy and Los Angeles Conservancy are working to designate the site as a protected landmark.
Timeline
December 14, 2026: The Landmarks Commission will hold a public hearing on the landmark nomination.
Culture Shift
This development highlights the ongoing tension between urban densification and historic preservation in Southern California. The project reflects a broader trend of replacing aging commercial structures with high-density housing to address regional space shortages.
Residents should expect increased discussion regarding neighborhood character as the review process moves forward. The potential transformation of this site will influence future retail availability and housing density for those living in the surrounding area.
The takeaway
The proposed redevelopment marks a significant test for the city's approach to architectural preservation. Residents interested in the outcome of this site should monitor the commission hearing for updates on potential land-use changes.
What happens next
The Landmarks Commission is scheduled to conduct a public hearing regarding the landmark status of the site on December 14, 2026.
Further reading
Learn more about local development trends in the Santa Monica Commercial section.
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